The following information is provided by the Center for REALTOR® Development (CRD).
Buyers may be reluctant to sign a representation agreement because they think it will limit their options and impose undue obligations. Although most buyers stick with the first agent they talk to, no one wants to feel pressured to make a commitment before they know if the arrangement will work out and if you can work together. How can you allay concerns but still make progress in establishing a buyer-client relationship?
If a buyer is uncomfortable with a long-term agreement, offer a shorter term; for example, an agent-for-a-day agreement. The agreement can be extended if the buyer wants to continue.
If the buyer doesn’t want to be tied down to just one agent, it’s okay to offer a nonexclusive agreement (if your brokerage policies allow it); however, the buyer should be aware of the drawbacks of such an arrangement.
Offer to take the buyers out once to view a couple of properties in order to get acquainted and see how you can help them. Be clear that an agreement will be required if you decide to work together.
The terms of the buyer representation agreement could specify a particular area or neighborhood; the buyer is not bound by the agreement if they find a home outside of the specified area. The buyer should be aware, however, that such an agreement limits the services you can provide.
Permit Cancellations or Offer a Guarantee
This agreement could include a cancellation clause if the buyer is dissatisfied with your services. You might also consider offering a performance guarantee that spells out what you will do and how you understand your duties.
To learn much more about how to provide real estate services that meet the needs of buyer-clients, please consider checking out the education, benefits and resources offered by ABR® Designation. This entire month of October, the featured 25% OFF course at the Center for REALTOR® Development is the Accredited Buyer’s Representative Designation course, which is the basic requirement toward obtaining the ABR® Designation.
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